Abstracts Business

Leading key performance indicator development requirement for a steel manufacturing organisation

by Zipho Blessed Khumalo

The steel industry is considered a very harsh working environment that has been seen to be a major contributor to the occupational health and safety incidents occurring in the manufacturing sector. Due to the nature of the steel making process, the steel industry remains dangerous to employees. Leading key performance indicators of safety are a control mechanism that can be used in contributing to the improvement of safety performance. The aim of the research conducted was to determine if leading key performance indicators of safety are being utilised in organisations in the steel industry, to determine the KPI in use was informative of the root cause of the safety incident and to identify the initial KPI development requirements in a steel manufacturing organisation in South Africa. A literature review centred on leading key performance indicators of safety was conducted to establish the meaning of KPI and their application in other similar industries. A benchmark for the research was established from the literature review. The research was influenced by the methods that were applied by Grabowski, Ayalasomayajula, Wang, Merrick, Mc Cafferty, Meador & Kinney, 2007, that were successfully used in the derivation of leading KPI in the shipping industry. The research done by Toellner, 2001 on leading indicators of safety was also influential in conducting this study. The data was obtained through random sampling in a population of production staff, engineering, personnel, specialists and managerial staff, whose experience in the industry ranged from two years to forty years. The questionnaire was randomly distributed to a population consisting of fourteen supervisors, twelve engineering staff, eighty-six production personnel, twenty-one specialists and six management staff. The respondents’ level of experience in the industry varied from two years to forty years and a combined experience level of one-hundred and thirty-five years. It was found that the key performance indicators of safety that were being utilised have not evolved significantly over the past fifteen years and they do not provide insight to the root cause of the accident. This research provides the strategic requirements needing for developing leading key performance indicators of safety in a steel manufacturing organisation. Advisors/Committee Members: Pretorius, J.H.C., Prof., Musonda, I., Dr (advisor).